Do you discount your way to high-volume user engagement and usage behavior?

This is a contentious issue with marketers, especially those in high-growth environments.

My response? No. Only with moderation, perhaps.

And why?

Discounts are modified versions of “flash sales”. They create a lack of urgency in every day browse/shopping mode because purchases are not based on perceived value, but because it’s the cheapest product at that point in time.

Discounts, if mis-used, prompt comparison shopping. True, most users/prospective customers will do that anyways. We can’t stop that. But the deeper tragedy that can occur is missing a larger opportunity to create lifetime customers based on creating/driving product (value-add) awareness versus attracting “discount hunters”, “coupon clippers”, whatever-you-name-it that hone in on the cheapest price available for xyz.

Short story – approach discounting with caution. And blend time-sensitive offers with messaging that includes product FAQs, educational resources (i.e. how-to videos).

Discounting, frequently, can create quick-wins of attracting (new) users shopping for the “best deal”, but it doesn’t always drive quality users and customers that will drive your business value forward.